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Terms & Conditions

1. This Schedule 1 (Risk warning ) is intended to provide you both with information and a warning of the risks associated with the products and/or services you may purchase, sell or subscribe for, from or through us. You must not rely on the guidance contained in this Schedule 1 (Risk warning ) as investment advice based on your specific circumstances, nor as a recommendation to enter into any of the services or invest in any of the specific products listed. Please note that risk factors may occur simultaneously and/or may compound each other resulting in an unpredictable effect on the value of any investment.

2. The price or value of investments and the income received from them may go down as well as up and you may not get back all the money invested. The price at which transactions may be executed on your behalf may depend on fluctuations in the financial markets outside our control. Please note that we will not be liable for any loss of opportunity or reduction in the value of your portfolio due to market fluctuations. Past performance is no indicator of future performance.

3. Use of borrowing to invest increases both the volatility and the risk of an investment. This applies if a company has significant borrowings, or if an investment vehicle otherwise allows you to gain much greater economic exposure to an asset than is paid for at the point of sale. It also applies if you borrow money for the specific purpose of investing. The impact of leverage can be as follows:

4. movements in the price of an investment leads to much greater volatility in the value of the leveraged position, and this could lead to sudden and large falls in value;

5. the impact of interest costs could lead to an increase in any rate of return required to break even; or

6. you may receive back nothing at all if there are significantly large falls in the value of the investment.

7. We may advise on and arrange deals in investments which are not readily realisable i.e. they have reduced liquidity. The liquidity of an investment is directly affected by the supply and demand for that investment and also indirectly by other factors, including, where the investment is listed, market disruptions or infrastructure issues. Under certain trading conditions it may be difficult or impossible to liquidate or acquire a position. This may occur, for example, at time of rapid price rises or falls to such an extent that under the rules of the relevant exchange trading is suspended or restricted. Unless specific contract terms so provide, a party may not have to accept early termination of a contract or buy back or redeem the relevant product and there may therefore be zero liquidity in the product. In other cases, early termination, realisation or redemption may result in you receiving substantially less than you paid for the product or, in some cases, nothing at all. There can be no certainty that a particular investment will be able to be sold and it may be difficult to determine its current value.

8. We may advise on and arrange deals in listed investments which are themselves invested in listed entities. This could increase your exposure to market volatility or infrastructure issues affecting the liquidity of your investment.

9. We may advise on and arrange deals in units in unregulated collective schemes. These type of investments are not regulated and therefore, they are not available to the general public.

10. Investments in small companies may carry higher risk as they are less liquid than larger companies, which means that fluctuations in price may be greater than for larger companies.

11. We may advise on and arrange deals in investments, the prices of which may have been influenced by measures taken to stabilise it. Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it.

12. We may advise on and arrange deals in warrants. A warrant is a time-limited right to subscribe for shares, debentures, loan stock or government securities and is exercisable against the original issuer of the underlying securities. Warrants often involve a high degree of gearing. A relatively small movement in the price of the underlying security results in a disproportionately large movement, unfavourable or favourable, in the price of the warrant. The prices of warrants can therefore be volatile. In the event that the right to subscribe is not taken up within the predetermined time limit, the investment will become worthless. You should not buy warrants unless you are prepared to sustain a total loss of the money invested.

13. In relation to foreign currency denominated investments, changes in the rates of exchange may have a favourable or unfavourable effect on the gain or loss which would otherwise be experienced on the investment.

14. Investments in emerging markets may suffer from liquidity problems (such as difficulties with dealing, settlement and custody practices) and can be very volatile. This means that it can sometimes be difficult for us to sell certain shares and therefore these types of investments carry more risk. There is also a greater potential for social and political instability in these countries.

15. There is a risk to capital, including the potential erosion of capital resulting from withdrawals in excess of investment returns and risks arising per se out of the nature of certain forms of investment.

16. There is a risk that inflation will devalue the investment return from your portfolio.

17. We may make an introduction or arrangements or give advice on investments with a view to overseas brokers or other third parties conducting investment business with you from an office outside the UK. Where this is the case, you should note that in some or all respects, the regulatory system applying, including any compensation arrangements, will be different from that of the UK.

18. There can be no guarantee that the nature, basis or incidence of taxation may not change during the lifetime of an investment. This may cause potential, current or future tax liabilities, and you should be aware of the tax treatment of any investment product before you decide to invest. If you are uncertain about any aspect of how an investment might relate to your own tax position, please seek professional tax advice. Please note that Zucker & Co. does not provide tax advice.

19. Contingent liability transactions, which are margined may require investors to make a series of payments based on the market value of the underlying assets from time to time. If you trade in futures, contracts for differences or sell options, you may sustain a total loss of the margin you deposit prior to closeout. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract.

20. Transactions in futures or forwards differ to legal obligation to either buy ('long') or to sell ('short') a specified amount of an asset at expiry at a price determined today. These transactions usually carry a high degree of risk, which arises because an investor is exposed to the movement of a proportionately large amount of the underlying in return for a small upfront payment. This can either work in the favour or against an investor, depending on the difference between the current market price of the underlying and the strike price defined in the contract.

21. Contracts for difference are similar to futures or forwards. However, unlike other futures and options, these contracts can only be settled in cash. Investing in a contract for difference carries the similar risks as investing in a future and you should be aware and understand the risk warnings set out in the above sections.

22. Some contracts for difference are known as swaps. Typical forms of this type of contract can be similar to an agreement to purchase or sell a series of options over an underlying asset or index at an average price specified today. Swaps and other contracts for difference are contingent liability investments, meaning that if the underlying price moves in an unfavourable direction an investor can be called on to pay additional cash on final settlement.

23. It may not always be apparent that a derivative is traded on or off-exchange. Some off-exchange products may be highly liquid, however many such products are not transferable and there is no exchange market on which to close out an existing position. It may not be possible to liquidate a position held in such a contract, or to accurately assess its value or exposure to risk.

24. Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted. Placing a stop-loss order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order at the stipulated price.

25. In the event of an insolvency or default of the issuer of a derivative, or that of any other brokers involved with your transaction, may lead to positions being liquidated or closed out without your consent. In certain circumstances, you may not get back the actual assets which you lodged as collateral and you may have to accept any available payments in cash. On request, your firm must provide an explanation of the extent to which it will accept liability for any insolvency of, or default by, other firms involved with your transactions.